J.P. Morgan 'Whale' Report Signals Deeper Problem

Losses on 'Whale' Trades Total $5.8 Billion This Year

By

Dan Fitzpatrick And

Gregory Zuckerman

Updated July 14, 2012 9:36 a.m. ET

J.P. Morgan Chase & Co. said traders appear to have hidden problems in a portfolio whose losses have ballooned to $5.8 billion, the latest twist in an episode that has tested the reputation of Chief Executive James Dimon as one of Wall Street's soundest risk managers.

A review of roughly 1 million e-mails and tens of thousands of voice tapes suggests traders within the once-obscure Chief Investment Office "may have been seeking to avoid showing the full amount of losses" during the first quarter by placing...